Four Large Affordable Housing Projects Proposed for Sioux Falls

City of Sioux Falls officials today announced City funding for the development of four large affordable housing projects. The developments announced today will provide a total of 129 units of affordable and workforce housing.

Majestic Ridge will be located on Sparta Avenue in the Majestic Meadows Addition of southeastern Sioux Falls. This $8.3 million project will provide 53 affordable housing units for tenants with incomes at 60 percent or less of the area median income and will be owned, developed, and managed by Costello Companies.

The South Dakota Housing Development Authority is providing $6.1 million of the project costs. The City’s $500,000 contribution will be in the form of a loan and will be repaid to the City over the life of the project. Construction will begin in April 2018, and the apartments are scheduled to open in June 2019.

Cleveland Center will be located at 2601 East Eighth Street. The brand new $4.5 million apartment project will offer 39 affordable housing units for tenants with incomes at 50 percent or less of the area median income. Lloyd Companies will develop, own, and manage the property.

The South Dakota Housing Development Authority is providing $4.48 million of the project costs. The City’s $20,000 contribution will be in the form of a loan and will be repaid to the City over the life of the project. Construction will begin in spring 2018, and the apartments are scheduled to open in summer 2019.

The Glory House Project will be located on the Glory House campus at 4000 South West Avenue. The $2.6 million apartment project will offer 25 affordable housing units for men and women who have been incarcerated and are reentering the community.

The South Dakota Housing Development Authority is providing $2.3 million, and the City is providing $300,000. Construction will begin in spring 2018, and the apartments are scheduled to open in summer 2019.

Sherwood Triplex/Twinhome Project will be located in northeastern Sioux Falls at the intersection of Pearl Street and Sherwood Avenue. The project is a joint venture of the Sioux Falls Housing and Redevelopment Commission and Affordable Housing Solutions. This $2.6 million project will provide 12 affordable housing units for owners with incomes at 80 percent or less of the area median income.

The City is providing $2.4 million of the project costs in the form of a development and construction loan and will be satisfied upon sale of the units to income-qualified buyers. The South Dakota Housing Development Authority is providing $240,000 in down payment assistance for qualified buyers. Construction will begin in spring 2018, with homes scheduled for sale in the summer of 2018.

“These four projects are excellent examples of the complexity of the affordable housing process and illustrate the need for teamwork among multiple organizations to bring projects like these to fruition. The 129 affordable housing units provided by these projects are a great achievement of these incredible partnerships,” says Les Kinstad, Affordable Housing Manager for the City of Sioux Falls.